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Jay Ryals from Fifth Third Bank gave an updated presentation on bond refinancing to the North Adams Community School’s board of education earlier this week.
Ryals appeared before the board in May told school officials the district was in a position to save a substantial amount of money by refinancing its existing pension bonds.
Currently, Ryals explained, interest rates are low, meaning the school could save $411,000 annually — with a level savings option or $523,000 — with the early payoff bonds. Those numbers are greater than the projected numbers in May which were set at $265,000 and $352,000, respectively.
The difference between the two figures depends on when the money is utilized, Ryals explained. “With the level savings, money can be tapped into annually. With the early payoff it will be approximately 10 years before that money may be used.”
According to North Adams Schools Superintendent Brent Lehman, the board has used outside consultants to advise them on the right approach to refinancing. “We have met with London Witte, a financial advisor with Ice Miller, who deals with bond counsel and received outside quotes to determine the right route to go,” Lehman said.
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